Investors are coming back because the once high-flying stock is showing signs of a slow turnaround. Earlier this month, the chain based in Winston-Salem, N.C., reported a rise in same-store sales for the seventh quarter in a row. Krispy Kreme also said it was raising its estimate of operating income for the entire fiscal year to a new range of $13 million to $17 million, up from the $11 million to $15 million it predicted in June.

The stock has attracted enough interest that in the last six months a handful of stock analysts has begun covering the stock again.

Of course, this is a far cry from the heady days soon after the company went public in 2000. Back then, customers lined up for company's freshly made glazed doughnuts and its stock price briefly climbed above $50. Shares tumbled, however, when the company overexpanded and couldn't keep growing its sales. The chain had to close stores and got into legal battles with some franchisees.

Now under new management, a much slimmed-down Krispy Kreme is beginning to open new stores again.

"Our transition is an ongoing process," company CEO Jim Morgan said in a Sept. 2 release (.pdf) announcing a small quarterly profit (compared with losses a year ago). "We are confident we can build an even stronger foundation for the future by continuing to both invest in our businesses and support our domestic and international franchisees."